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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.Com.DEGREE EXAMINATION -COMMERCE
FOURTH SEMESTER APRIL 2018
16UCO4MC01- COST ACCOUNTING
Date: 20-04-2018 Dept. No. Max. 100 Marks
Time: 09:00-12:00
PART A
ANSWER ALL THE QUESTIONS: (10 x 2 20 marks)
1. Define Cost Accounting.
2. What is idle time?
3. What is meant by labour turnover?
4. Define overhead.
5. What is Prime cost?
6. What is meant by 'Memorandum Reconciliation Account'?
7. Find out the economic order quantity from the following particulars:
Annual usage 6,000 units Cost of material per unit Rs. 20 Cost of placing and Receiving one order: Rs. 60. Annual carrying cost of one unit: 10 of inventory value. 8. The production overhead of department A in a factory is budgeted at Rs. 80,000. It is anticipated that the labour hours worked during the same period will be 10,000 hours. Calculate the labour hour rate for the purpose of overhead absorption.
9. Calculate work cost: Factory expenses Rs. 700 Office expenses Rs. 300 Selling expenses Rs. 900 Material consumed Rs. 3,400
10. A transport company operates 4 buses on a route 100 kms. long. Each bus makes three round trips per day on all 30 days in a month. On an average 20% of the vehicles are in garage for repairs and maintenance. Ascertain the total distance covered by the buses in one month period.
PART B
ANSWER ANY FOUR QUESTIONS: x 10 40 marks)
11. Bring out the difference between Financial Accounting and Cost Accounting.
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12. Elaborate the various methods of wage payments.
13. Vishnu Ltd purchased and issued the materials in the following order:
2018 March 1 Purchased 300 units at Rs. 3 per unit. 5 Purchased 500 units at Rs. 4 per unit.
10 Issued 500 units 12 Purchased 700 units at Rs. 4.50 per unit.
15 Issued 700 units 20 Purchased 300 units at Rs. 5 per unit.
30 Issued 150 units
Ascertain the quantity of closing stock as on 31st March and state its value under "Weighted average cost" method.
14. From the following particulars compute the machine hour rate.
Cost of the machine Rs.11,000
Scrap Value Rs. 680
Repairs for the effective working life Rs.1,500
Standing charges for 4 weekly period Rs.40
Effective working life 10,000 hours
Power used: 6 units per hour at 5 paise per unit
Hours worked in 4 weekly periods: 120 hours.
15. From the following particulars, work out the earnings for the week of worker under:
a. Straight piece rate system
b. Differential piece rate system
c. Halsey premium system
d. Rowan system
No. of working hours per week 48
Wages per hour Rs.3.75
Rate per piece Rs. 1.50
Normal time per piece 20 minutes
Normal output per week 120 pieces
Actual output for the week 150 pieces
Differential piece rate: 80% of piece rate when output is below standard and 120% of piece rate when output is above standard.
16. Calculate labour turnover rate by applying:
Separation method
Replacement method
Flux method
Number of workers on the payroll:
At the beginning of the month 900
At the end of the month 1,100
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During the month 10 workers left; 40 workers were discharged and 150 workers were recruited. Of these, 25 workers are recruited in the vacancies of those leaving while the rest were engaged for an expansion scheme.
Calculate the normal and overtime wages payable to a workman from the following data:
Days
Hours worked
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
8
12
10
10
9
4
Total
53
Normal working hours 8 hours per day; on Saturday 4 hours.
Normal rate Rs.2 per hour.
Overtime up to 9 hours in a day single rate and over 9hours in a day at double rate or upto 48 hours in a week at a single rate and over 48 hours at double rate, whichever is more beneficial to the worker.
17. The following are the expenses of Latha& Co. in respect of a contract which commenced on 1.1.2017:
Materials purchased Rs.50,000
Materials on hand Rs. 2,500
Direct wages Rs.75,000
Plant issued Rs.25,000
Direct expenses Rs.40,000
The contract price was Rs.750,000 and the same was duly received when the contract was completed in August 2017. Charge indirect expenses at 15% on wages; provide Rs.5,000 for depreciation on plant and prepare the contract account.
PART C
ANSWER ANY TWO QUESTIONS: x 20 40 marks)
18. Aditya producing concern is divided into four departments. are production departments and is a service department. The actual expenses for a period are as follows: Rs.
Rent 10,000
Repairs to plant 6,000
Depreciation of plant 4,500
Lighting expenses 1,000
Supervisory expenses 15,000
Fire insurance (on stock) 5,000
Power 9,000
Employer's liability for insurance 1,500
The following information relates to four departments.
Departments
A
B
C
D
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Area (sq. Feet)
Number of lights
Number of employees Total wages Value of plant Value of stock
1,500
75
200
60,000
2,40,000
1,50,000
1,100
11
150
40,000
1,80,000
90,000
900
9
100
30,000
1,20,000
60,000
500
5
50
20,000
60,000

Apportion the costs to the various departments on the most equitable method.
19. Prepare a cost sheet by using the below information. Rs.
Stock of raw materials on 1st Dec. 2000 75,000
Stock of raw materials on 31st Dec 2000 91,500
Direct wages 52,500
Indirect wages 2,750
Sales 2,11,000
Work-in-progress on 1st Dec. 2000 28,000
Work-in-progress on 31st Dec 2000 35,000
Purchases of raw materials 66,000
Factory rent, rates and power 15,000
Depreciation of plant and machinery 3,500
Expenses on purchases 1,500
Carriage outwards 2,500
Advertising 3,500
Office rent and taxes 2,500
Traveller's wages and commission 6,500
Stock of finished goods (1st Dec 2000) 54,000
Stock of finished goods (31st Dec 2000) 31,000
20. From the following, prepare a reconciliation statement between cost and financial records: Rs.
Net profit as per financial records 1,28,755
Net profit as per costing records 1,72,400
Works overhead under-recovered in costing 3,120
Administrative overhead recovered in excess 1,700
Depreciation charged in financial records 11,200
Depreciation recovered in costing 12,500
Interest received but not included in costing 8,000
Obsolescence loss charged in financial records 5,700
Income tax provided in financial books 40,300
Bank interest credited in financial books) 750
Stores adjustment (credit in financial books) 475
Depreciation of stock charged in financial books 6,750
21. The product of a company asks us through three distinct process took completion. They are known as B and C. From past experience, it is ascertained that the loss in incurred in each process is follows:
Process Process and Process 10%.
In each case, the percentage of loss is computed on the number of units entering in the process concerned. The loss of each process possess a scrap value, the loss of process A and B sold at 5 per 100 units and the process of C at 20 per 100 units.
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Details
Process A
Rs.
Process B
Rs.
Process C
Rs.
Materials consumed
Direct labour
Manufacturing expenses
6,000
8,000
1,000
4,000
6,000
1,000
2,000
3,000
1,500
20000 units have been issued to process a at a cost of Rs.10000. the output of each process has been as under:
Process A-19500 units; process b 18,800 units; process c-16000 units.
There is no work in progress in any process.
Prepare process account.